Trump pushes historic $1.5 trillion defense budget to build ‘dream military’

WASHINGTON, DC: Donald Trump on Wednesday called for a dramatic expansion of US military spending, proposing a $1.5 trillion defense budget for 2027 as he warned of increasingly “troubled and dangerous times” around the world.

The proposed figure would represent a more than 50% increase from the $901 billion defense budget approved by Congress in December, marking the largest military spending jump in modern US history.

Trump proposes $1.5 trillion defense budget

In a series of social media posts, Donald Trump argued that the United States must rapidly strengthen its military capabilities to deter threats from adversaries across the globe. “This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump wrote.

The president insisted that the ambitious spending target was financially achievable, claiming the federal government could “easily hit” the $1.5 trillion mark through revenue generated by tariffs imposed under his administration.

Economists, however, have repeatedly warned that the gap between US spending and federal revenue is already at unsustainable levels.

Trump warns defense firms over pay, production

Alongside his spending proposal, Donald Trump sharply criticized major US defense contractors, accusing them of prioritizing shareholder payouts over national security. 

He said arms manufacturers were issuing “massive” dividends and conducting stock buybacks while failing to invest in new factories and faster weapons production. “No Executive should be allowed to make in excess of $5 Million Dollars,” Trump wrote, calling current compensation packages “exorbitant” and disconnected from performance.

Trump also threatened to cut off government contracts for companies that fail to expand manufacturing capacity, urging them to build new, modern plants capable of meeting defense demands.

Trump blasts Raytheon amid defense buildup

In one of his posts, Donald Trump directly called out Raytheon, accusing the defense giant of lagging behind competitors when it comes to production speed.

“Either Raytheon steps up and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with the Department of War,” Trump wrote.

Despite the criticism, Wall Street reacted positively to the broader spending push. Shares of Lockheed Martin, Northrop Grumman, and Raytheon rose more than 5% in extended New York trading following Trump’s announcements.

Trump’s call for increased defense funding comes amid escalating geopolitical tensions worldwide.

Over the weekend, US forces seized Venezuelan leader Nicolás Maduro and transported him to the United States to face drug trafficking charges, an operation that has drawn international attention and backlash. On Wednesday, US forces also captured a Russian-flagged oil tanker suspected of violating American sanctions, further heightening tensions with Moscow. 

In Asia, China held large-scale military drills around Taiwan in December, simulating the seizure and blockade of key areas of the island as a warning against what Beijing described as “separatist forces.”

Taiwan’s own push to ramp up defense spending this year has angered China, which claims the self-governed island as its territory.